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Earlier this year, in a matter of first impression, the Monmouth County Law Division in Janco v. Bay Ridge Automotive Management Corp. held that the amendment to the New Jersey Law Against Discrimination (NJLAD) which prohibits a waiver of any right or remedy available under the NJLAD was superseded by the Federal Arbitration Act (FAA). In its decision on March 25, 2021 in New Jersey Civil Justice Institute v. Grewal, the United States District Court followed suit and enjoined the State AG from enforcing Section 12.7 of the NJLAD that would invalidate arbitration agreements between employers and employees. This decision represents a significant victory for employers on the enforceability of arbitration agreements in harassment, discrimination and retaliation cases in New Jersey.
NJ looks to become next front in debate over data privacy
TRENTON State lawmakers are drafting and refining bills that could make New Jersey the next front in the nationwide debate over data privacy.
California has a well-known data privacy law, Virginia enacted its own version last month, and there is renewed hope Congress may set a new national standard. Ashkan Soltani, former chief technologist for the Federal Trade Commission, supports states trying new frameworks – if they’re effective.
But at a recent Assembly Science, Innovation and Technology Committee hearing, he said the New Jersey proposals wouldn’t be.
“Of the three bills that I reviewed, I identified multiple loopholes which effectively would render them useless,” Soltani said.
Tuesday, April 6, 2021
To the extent that it attempted to limit the prospective waiver of procedural rights in favor of arbitration or other alternative dispute resolution, the 2019 amendment to the New Jersey Law Against Discrimination (NJLAD) is preempted by the Federal Arbitration Act (FAA), a New Jersey federal court has ruled in an unpublished opinion.
The NJLAD amendment in Section 12.7, passed in March 2019, sought to make unenforceable any provision in an employment contract that waived any substantive or procedural right relating to discrimination, retaliation, or harassment claims. The court reasoned that, in violation of Section 2 of the FAA, Section 12.7 effectively disfavors agreements to arbitrate certain types of claims.
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